Item 3.1.11

3.1.11 Foreign income

Applies to the income year 2018

Under this item, you must enter all foreign income that is liable to tax in Norway that is not entered under other items. This includes for example interest on deposits in foreign banks, income from foreign bearer bonds and loans and gains on the sale of real property abroad.

Does this item concern me?

The item concerns you if you have at least one of the following:

  • interest on deposits in a foreign bank, stated in form "RF-1231E Deposits in foreign banks"
  • gains on the sale of real property abroad (see the exception above), interest on outstanding loans to individuals or companies abroad
  • income from bonds
  • income from holdings in foreign companies that is not business income,
  • taxable annual yield from endowment insurance taken out in another EEA state (special rules apply for life insurance policies taken out before 1 January 2004)
  • taxable payments during 2017 from endowment insurance with an investment option without a guaranteed yield (unit-linked insurance) from a company in another EEA state
  • yields paid out on an endowment insurance policy (with or without a guaranteed yield) taken out with an insurance company outside the EEA (applies only to contracts established after 1 January 1986).

Taxable rental income from real property abroad must be entered under item 2.8.5. Taxable income from employment must be entered under item 2.1.1.

How do I enter this in my tax return?

You must declare all foreign income under item 3.1.11.

You must submit form RF-1231E Deposits in foreign banks. In this form, you must enter your capital as of 31 December, the name of the foreign bank and the interest income.

You must enter the deposit under item 4.1.9, while under item 3.1.11 you must enter the interest amounts stated in form RF-1231E section III "Total for all accounts", item II "Total interest, yield in NOK". The interest must be specified in Norwegian kroner. Use the average exchange rate for the income year from Norges bank. When you submit electronically, the amount under item 3.1.11 will be automatically transferred from form RF-1231E.

Under this item, you must enter interest on the loan in Norwegian kroner. Use the average exchange rate for the income year from Norges bank. The loan itself must be entered under item 4.6.2.

When you sell property abroad, you are tax liable in the same way as when you sell property in Norway, item 2.8.4. If you sell a property at a loss, you must enter it under item 3.3.6 if you are entitled to a deduction for the loss. If the gain is tax liable, you must enter it under item 3.1.11. Please enter the income in Norwegian kroner, and use Norges Bank's bid rate as of the date of payment.

Norway has entered into tax treaties with many countries where the treaty state that you avoid double taxation by using the distribution method. If your property is in one of these countries, you should not enter gains from the sale of real property abroad under item 3.1.11 in your tax return. 

Yield, payments and other income

Under this item, you must enter the income in Norwegian kroner. Use Norges Bank's bid rate. In the case of ongoing payments, you must use the average rate for the full year, while in the case of individual payments, you should use the rate applicable on the date of payment.

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Documentation requirements

If you have bank deposits abroad, you must complete and submit RF-1231 Deposits in foreign banks with your tax return. You must send us the annual statement from the bank/savings institution upon request.

In the case of gains made on the sale of real property, you must be able to, upon request, present documentation and the calculation of the gain.

For other income you must be able to, upon request, present documentation from your insurance company, creditor, etc..

If we ask for documentation of the loan and interest, you must be able to provide us with a copy of the debt certificate or the agreement between you and the borrower.

If you have paid tax on the income abroad, you can claim a deduction from your Norwegian tax. You must tick the box “Yes” for credit deduction under item 1.5.6. Complete and submit form RF-1147E Deduction for tax paid abroad by a person - credit deduction together with your tax return. If you submit electronically, this form will become available when you answer "Yes" under the item.

If you are claiming a credit deduction, you must be able to document tax that has been assessed and paid in the other country upon request.